SUNPOWER OF ARIZONA 1135 N. Jefferson Ave ROC191937 ...files.meetup.com/1073632/Joe DiMatteo - Sun...

Solar Basics• Sun’s Energy Content

– Consists of many wavelengths

– 1,000 Watts per square meter

• Types of Solar Systems

– Solar Thermal

• Pool Heating

• Hot Water

– Solar Electric

SUNPOWER OF ARIZONA ROC191937, ROC194615, ROC209757

www.sunpowerofaz.com

1,000W

1 M

1 M

Contact Information: Joseph DiMatteo, M.S.E.E., P.E. Toll Free: 888.786.3939 [email protected]

Copyright © 2008 SUNPOWER INTERNATIONAL Inc. All Rights Reserved. v100808

1135 N. Jefferson Ave

Tucson, AZ 85712

Main Office: 520.751.3939

Chandler: 480-883-6686

mailto:[email protected]

Solar Basics

• Hot Water

• Pool Heating

• Solar Electric



1,000W/m2

1,000W/m2

1,000W/m2

400W

300W

100W

Closed Loop

Open Loop

Magic

Energy Input Process Useful Output




Tucson, AZ 85712


Chandler: 480-883-6686


Solar Basics - Why The Difference?






Tucson, AZ 85712


Chandler: 480-883-6686

Ult

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Ph

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nerg

y,

eV

Wavelength, uM

1

2

3

4

0.5 1.0 1.5 2.0

Si PV = 44% Max


• Financial Measures: – Payback versus Return On Investment (ROI)…which is better?

• 10 to 20 Year Payback?

• 5% to 10% ROI?

• ?

• ?

• ?

– The simple answer is they are the same. Simple Payback and ROI are the inverse of each other. Most people are aghast at the notion it may take 20 years to recoup their investment in solar but many find the prospects of a 5% ROI on their solar investment to be pretty good… How many of your investments are generating a better return than 5% to 10%? How many of your investments are making Arizona a better place?





Solar Economics


Tucson, AZ 85712


Chandler: 480-883-6686


• Financial Measures: – Cost versus Value, i.e. “how much of my investment will I recoup

when I sell?”

• Remodeling Cost Recouped: Solar Electric System = 128% – vs. Bathroom 85%, Kitchen 80%, Deck 77%, Sunroom 66%

– Source: Hanley Wood Remodeling Cost vs. Value Report 2006 Based National Averages for 4KW system and $155 monthly electric bill

• Houses with solar electric systems:– appreciate 62% faster than non-solar homes

– increase in value $20,000 for every $1,000 in reduced annual operating costs

– Source: National Renewable Energy Laboratory (NREL). Comparative Analysis of Homebuyer Response to New Zero Energy Homes, July 2004

• Local realtors: “…houses with quality solar systems sell faster…”





Solar Economics


Tucson, AZ 85712


Chandler: 480-883-6686


• Financial Measures: – Federal Investment Tax Credit (ITC) Extensions effective 1/1/09

• 30% per Hot Water and PV system

– Pool Heating systems do not qualify

– $2,000 cap on residential PV credit eliminated

– Alternative Minimum Tax (AMT) filers can now take credits

• 5 Year Accelerated Depreciation (MACRS) Schedule for Business Installations

– State Income Tax Credit

• 25% up to $1,000 for residential installations (PV, DHW, Pool)

• 10% for Business Installations

– Utility Rebates for PV and Hot Water

• Up Front Incentives (UFI)

• Performance Based Incentives





Solar Economics


Tucson, AZ 85712


Chandler: 480-883-6686


• Financial Measures: – “Apples-to-Apples” comparison of the options, i.e. “what would

equivalent systems cost?”• An attempt to show a comparison of the three main types of systems in terms of

an equivalent output in useful energy. Not a practical comparison but it helps illustrate the difference the system efficiencies have on the economics.

– “Real World” comparison of the options, i.e. “how do I prioritize which practical solar options to invest in?”

• A comparison of the economics and performance of three typical systems currently being installed.





Solar Economics


Tucson, AZ 85712


Chandler: 480-883-6686


Solar Economics “Apples-to-Apples”



Solar System Type ApproximateAnnual Output(KWH/yr in Southern AZ)

Approximate System Efficiency

Approximate Cost Before Tax and UtilityIncentives

Approximate Cost After Tax and UtilityIncentives (as of 1/1/09)

Domestic Hot Water with (1) 4’x10’ glazedsolar thermal panel and (1) 80 gallon tank

3,100 40% $5,500 $1,800

Pool Heating with (1) 4’x12’ unglazed “plastic” solar thermal panel …don’t try this at home…not practical

3,100 30% $1,500 $1,100

Electric/PV with (9) 3.5’x5.5’ 195 Watt panels and (1) 2.8KW Inverter

3,100 10% $14,000 $5,100 APS, SRP, TEP

$3,900 Trico, SSVEC




Tucson, AZ 85712


Chandler: 480-883-6686


Solar Economics “Real World”



Solar System Type ApproximateAnnual Output(KWH/yr in Southern AZ)

Approximate Cost BeforeTax and UtilityIncentives

Approximate Cost After Tax and UtilityIncentives (as of 1/1/09)

Approximate Return On Investment (ROI)

Domestic Hot Water with (1) 4’x10’ glazedsolar thermal panel and (1) 80 gallon tank

3,100 $5,500 $1,800 15% to 30%

Pool Heating with (10) 4’x12’ unglazed“plastic” solar thermal panel s

31,000 $5,500 $4,500 NA…OR…”Phantom 20% to

50%”

Electric/PV with (10) 3.5’x5.5’ 216Watt panels and (1) 2.8KW Inverter

3,700to

4,100

$17,000 $7,000 APS, SRP, TEP

$5,000 Trico, SSVEC

6% to 8% Residential

10% to 14% Business




Tucson, AZ 85712


Chandler: 480-883-6686


Solar Electric Overview

• Grid Tie System…hooked up to the utility

– Net metering = bidirectional electrical meter + net billing

– No batteries usually…

– If electrical grid goes down, so does you grid tied system

– ALWAYS ATTACH TO THE GRID IF YOU CAN…

– Usually $7K-$8K per DC KW before incentives

• Off-Grid System…too expensive to hook up to utility

– Lots of batteries always…

– Usually $10K-$12K per DC KW before incentives






Tucson, AZ 85712


Chandler: 480-883-6686




Contact Information: Joseph DiMatteo, M.S.E.E., P.E. Toll Free: 888.786.3939 [email protected] © 2008 SUNPOWER INTERNATIONAL Inc. All Rights Reserved v100808

Xantrex

GT3.3

Inverter

+ - L1 L2

PV

Meter

Existing Main AC

Service Panel

“Load”

Breakers

“Backfed”

PV Breaker

+ -#1Sharp

175W

+ -#2Sharp

175W

+ -#3Sharp

175W

+ -#4Sharp

175W

+ -#5Sharp

175W

+ -#6Sharp

175W

+ -#7Sharp

175W

+ -#8Sharp

175W

+ -#9Sharp

175W - +

Row Box

Grounding

Electrode

Conduit

approximately 40”x65” and weighs about 50 lbs with mounts.

Utility “Net” Meter

Utility Electrical

Grid

DC Energy

AC

Energy

“AC

Loads”

Solar Electric Case Study – Typical Small Grid Tied System


Tucson, AZ 85712


Chandler: 480-883-6686


Solar Electric Case Study• (9) 175W Sharp Panels plus Xantrex GT3.3 System

– TEP customer in Oro Valley, AZ; approx. $.101/KWH rate

– Ideal site parameters…no shading, perfect south facing orientation, inverter shaded 100% of time, breezy location

– $11,800 system before incentives, $4,100 after incentives• $11,800 - $4,725 (TEP Rebate) – ($3,000 Fed/AZ Credit) = $4,075

• Predicted annual output @ 70% DC-AC efficiency = 2,616 KWH

• Actual annual output = 3,160 KWH = approx 85% DC-AC efficiency!!!

• Predicted net ROI = [(2,616 KWH)x($.101/KWH)]/$4,100 = 6.4%

• Actual ROI 2007/2008 = [(3,160 KWH)x($.101/KWH)]/$4,100 = 7.8%

• ...AND the value of the house probably increased more than $4,100






Tucson, AZ 85712


Chandler: 480-883-6686


Solar Electric Overview




PV System Size ApproximateCost BeforeTax and UtilityIncentives

ApproximateCost After Tax and TEP UtilityIncentives (as of 1/1/09 Residential)

ApproximateAnnual Output(KWH/yr in Southern AZ)

Approximate Return On Investment (ROI)

2.2KW DC: (10) 216Watt panels and (1) 2.8KW Inverter

$19,000 $8,000 TEP, APS, SRP

$6,600 Trico, SSVEC

3,700to

4,100


10% to 14% Business


$33,800 $14,000 TEP, APS, SRP

$11,000 Trico, SSVEC

7,500to

8,200


12% to 17% Business


$43,500 $18,000 TEP, APS, SRP

$14,000 Trico, SSVEC

9,700to

10,600


12% to 18% Business


Tucson, AZ 85712


Chandler: 480-883-6686


Solar Priorities and Recommendations




1. Conservation…ALWAYS a smart move.

2. Solar Hot Water…a smoking good deal.

3. Solar Pool Heating…the only cost effective option.

4. Solar Electric…watching your meter turn backwards – priceless!!


Tucson, AZ 85712


Chandler: 480-883-6686


SUNPOWER OF ARIZONA 1135 N. Jefferson Ave ROC191937 ...files.meetup.com/1073632/Joe DiMatteo - Sun...

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